Roman Abramovich’s frozen Chelsea money could help Ukraine victims next month
£2.35 billion is still in the bank account of sanctioned Abramovich’s company Fordstam from sale last year of west London club
https://www.thetimes.co.uk/article/roman-abramovich-s-frozen-Chelsea-money-could-help-ukraine-victims-next-month-zw7zqh5df
Roman Abramovich’s frozen Chelsea money could start to reach causes to help victims of the war in Ukraine as early as next month, though the Russian-born oligarch will have to give his consent to releasing funds.
It is a year next week since the sale of Chelsea to a Todd Boehly-led consortium went through. The £2.35 billion is still in the bank account of Abramovich’s company Fordstam, which has been frozen by the British government since he was sanctioned because of Russia’s invasion of Ukraine.
The sale of Chelsea was approved by the government on the basis that the money would go to victims of the war.
Mike Penrose, a former chief executive of Unicef UK who is the head of the foundation set up to administer the money from the Chelsea sale, admitted that the process of getting the funds released for the good causes had taken much longer than he had envisaged but that he was now hopeful of a resolution.
Several projects covering health, housing, education and agriculture have been earmarked for funds.
Once the British government issues a licence allowing for the frozen funds to go to the foundation, then Fordstam — where Abramovich is still named as the person with significant control — will have to “push the button” to release the money.
“We believe we are in the final stage — it is one year next week and we hope we can get all the legals sorted out by then,” Penrose said.
“Dealing with three different [British] governments in that year has also been an issue, because you have to deal with new people each time and it is very complex.
“It has taken a lot longer than expected due to those complexities and the bureaucracies involved with the multiple jurisdictions, but everything is in place to go now, we are just waiting. The money is still there and is still very much on the table and I am very confident the agreement will be honoured.
“We have a world-class board lined up, and we have some initial programmes lined up linked to health, housing, education and agriculture, so we can start very quickly.”
Penrose has kept Fordstam’s secretary, Paul Heagren, updated on progress throughout the year, and confirmed that the company would have to release the funds formally once the government had issued the licence.
“They still own the money and it is still in their account but they are not involved in the negotiation,” he said. “This is sanctioned money not appropriated money so legally it is still the property of the person who has been sanctioned.
“We will get a licence from the government that permits the money to be transferred to us, and someone from the Fordstam end has to press the button to transfer it.
“It has been all written into the deed of undertaking to sell the club.”
